Oftel loosens leash on BT

Telecoms regulator Oftel this morning announced plans to roll back formal regulation of the market, raising concerns that BT would be let off the regulatory leash.

Oftel's latest approach is outlined in a strategy document, Achieving the Best Deal for Telecoms Consumers. The regulator wants to focus on an overall goal of effective competition rather than create specific detailed regulatory requirements, which principally affects BT because it is the market's dominant player.

"Consumers will have the same protection but with less formal regulation," said Oftel director general David Edmonds. "Oftel will now longer promote competition in competitive markets, but will continue to act to prevent anti-competitive practices and adequately protect consumers."

To ensure competition is maintained in different sectors of the market, the regulator will commission reviews every two years.

BT welcomed the news. A spokesman said: "The company supports deregulation and the UK is now an extremely competitive market for telecommunications."

However, user group the Telecommunications Managers Association said there are key areas of the market, particularly in areas such as pricing of leased lines, where there is clearly not enough competition to allow the regulator to step back.